The United Arab Emirates (UAE) has reaffirmed its commitment to maintaining oil market stability by adhering to additional voluntary adjustments aimed at balancing supply and demand. OPEC+ has decided to proceed with a planned increase in oil output starting in April, following pressure from the US to reduce prices. This move involves eight key OPEC+ countries, including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, which met virtually to review global market conditions and future outlooks.
The UAE is set to increase its oil production by 300,000 barrels per day, starting from April 2025 until September 2026, bringing its total production to approximately 3.519 million barrels per day. This gradual increase is part of a broader strategy to support oil market stability while allowing for flexibility based on market conditions. The group has also committed to compensating for any overproduced volumes since January 2024, ensuring that all compensations are completed by June 2026.
The decision to increase production reflects a positive market outlook and healthy market fundamentals. OPEC+ countries have agreed to remain adaptable to evolving conditions, ensuring that any excess production is offset through compensation plans submitted to the OPEC Secretariat. This approach underscores the group’s commitment to maintaining a stable oil market while navigating geopolitical pressures and market fluctuations.
As the UAE continues to play a significant role in global energy markets, its production increase is part of a broader strategy to maximize its influence and revenue. The country is also investing heavily in increasing its production capacity, aiming for 5 million barrels per day by 2027. This strategic move aligns with the UAE’s ambitions to become a major energy player while diversifying its economy beyond oil and gas.
The UAE’s economic growth in 2025 is expected to be robust, driven primarily by the non-oil sector, which is projected to grow by 4% to 5%. This diversification effort is supported by government policies and investments in sectors like tourism, real estate, and financial services, making the UAE’s economy more resilient to global energy market fluctuations.
